ECONOMICS

PROJECT TERM 2

GRADE 11

MARKS: 50

TIME: 2 HOURS

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MICROECONOMICS GRADE 11
TERM 2 PROJECT

INSTRUCTIONS AND INFORMATION

1. Answer all the questions.

2. Number answers correctly according the numbering system used in the task.
3. This task should be completed under controlled conditions.
4. Read the questions carefully.
5. Answer the questions in full sentences and ensure that the format, content and
context of your responses comply with the cognitive requirements of the questions.
6. Use only black or blue ink, and pencil to draw the graphs.
7. You may use a non-programmable pocket calculator.
8. Write neatly and legibly.

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QUESTION 1
Read the extract below and answer the questions that follow.

The Impact of Covid 19 on South Africa’s Agriculture Economy

Agriculture had been declared a critical industry and as such was exempt from the hardest
lockdown regulations. However, the industry as a whole and secondary agricultural
industries in particular were feeling the consequences.
Food production value chains are operational, albeit not at optimal levels, which was
causing bottlenecks and blockages that led to product losses. For example with
restaurants closed, the demand for high end meat cuts had dwindled to the point that
some feedlots were not buying in cattle, putting their businesses and jobs at risk. Similarly,
the throughput at abattoirs was down.
Similar situations prevailed in other segments, especially the poultry sector where single
biggest purchases of broilers-the fast, food chains such as KFC and Nandos were closed.
In the companion animal sector, the picture was even worse
Source:Bizcommunity.com 29 May 2020

1.1 Name the market structure in which agriculture farming operate. (1)

1.2 Who determines the price in perfect markets? (1)

1.3 Describe the market structure in which KFC and Nandos operate. (2)

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1.4 Why was agricultural sector declared as a critical industry and exempt from the
hardest lockdown regulations? (2)

1.5 Discuss the impact the hard-lockdown had on perfect markets. (4)

1.6 With the aid of graphs, illustrate the effect of a change in demand for chicken by
restaurants to a chicken farmer . (8)
[18]

QUESTION 2
Study the table below and answer the questions that follow
Output units Total costs Average costs Marginal costs
(TC) (ATC) (MC)
0 10 - 0
1 20 20 10
2 28 14 8
3 34 11.3 6
4 38 9.5 4
5 42 8.4 4
6 48 8 6
7 56 8 8
8 72 9 16

2.1 Identify the value of the fixed costs. (1)

2.2 Give an example of a fixed cost. (1)
2.3 Briefly describe the term marginal cost. (2)
2.4 Explain the intersection point of ATC and MC using information in the table.
(2)
2.5 Differentiate between the short run and long run. (4)
[10]

QUESTION 3
3.1 Name TWO products with an inelastic demand. (2)
3.2 What is the significance of price elasticity of demand to a producer? (2)
3.3 Distinguish between normal and inferior goods. (4)

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3.4 Use the scenario below to calculate the Ped (PRICE ELASTICITY OF
DEMAND):
If the price a product increases from R200 to R250 then demand falls from R450
to 300 units. Calculate Ped (PRICE ELASTICITY OF DEMAND) and determine
the degree of elasticity. (4)
[12]

QUESTION 4

4.1 With an aid of a graph, illustrate the current performance of State Owned
Enterprises monopolies in South Africa. (4)

4.2 Give possible reasons for the poor performance of the monopolies (6)
[10]

Total: 50